consumer surplus

Consumer Surplus
Institution
Student
Course
Date

Consumer surplus = consumer willingness to buy – the actual price of good/service
To plot the graph of consumer surplus, each apartment has to be evaluated separately according to Lori Landlord’s willingness to pay less than the actual price to repaint the apartment (Brynjolfsson & Smith, 2003). The happiness of every consumer to have consumer surplus in his/her purchases rather than deficit. Consumer deficit occurs when the willingness to buy is less than the actual price charged to acquire a certain good or service.
The value of his consumer surplus to have the apartments repainting will be as follows:
1st apartment = $er000 – $ 5000 = $ 0
2nd apartment = $ 4000 -$ 5000 = $ -1000
3rd apartment = $3000 -$ 5000 = $ -2000
4th apartment = $2000 -$ 5000 = $ -3000
5th apartment = $1000 -$ 5000 = $ -4000
Below is the graph of consumer surplus against the apartment houses

In case the price of repainting the apartments fall down to $ 2000 each, the value of consumer surplus for the apartments will be as follows:
1st apartment = $ 5000 – $ 2000 = $ 3000
2nd apartment = $ 4000 -$ 2000 = $ 2000
3rd apartment = $3000 -$ 2000 = $ 1000
4th apartment = $2000 -$ 2000 = $ 0
5th apartment = $1000 -$ 2000 = $ -1000
Since the value of consumer surplus is positive the 1st, 2nd, 3rd, and 4th apartments, Lori Landlord will have them repainted. The 5th apartment house will not be repainted because its value for consumer surplus is negative.

Total value for Lori’s consumer surplus will be as follows:
Total consumer surplus = summation of individual apartments value of consumer surplus
$ 3000 + $ 2000 + $ 1000 + $0 + ( $ -1000 ) = $ 5000
When the price to have Lori Landlord’s apartments repainted fell, the value of her consumer surplus increased for all apartments. Nevertheless, the value of consumer surplus to repaint the 5th apartment did not drop enough to become positive. The Ms. Landlord’s consumer surplus went up because the willingness to repaint the flats was higher than the actual price of repainting them.
My experience of consumer surplus
It has been ordinary for prices of most commodities to hike during the December Christmas holiday festivities. 2016 I had prepared to buy my younger siblings new attire as a gift as I traveled home. Since I expected the price to be higher than what is usually charged during normal times, I chose to put about $ 500 on top of the regular purchase price I had spent during the summer holiday. When I pimped in the fashion centers around the Washington city market, I realized the prices almost remained constant. I purchased the clothes actually with $ 200 less the previous cost. The total value of consumer surplus is $ 700. This was attributed to low economic performance during the season due to the USA election that had the Republican His Excellency president Donald Trump clinch the sit (Gallai et al., 2009).
The other instance when I experienced consumer surplus is in the payment of exam fees; I had prepared to pay $ 500 for the registration in my previous grade just like my elder brother had settled but it incurred $ 450 to have me registered. This implied that I had consumer surplus of $ 50.
References
Brynjolfsson, E., Hu, Y., & Smith, M. D. (2003). Consumer surplus in the digital economy: Estimating the value of increased product variety at online booksellers. Management Science, 49(11), 1580-1596.
Gallai, N., Salles, J. M., Settele, J., & Vaissière, B. E. (2009). Economic valuation of the vulnerability of world agriculture confronted with pollinator decline. Ecological economics, 68(3), 810-821.